Recently, several bills have been introduced, in both the House and Senate, that would provide tax changes in 2023 and beyond. These proposed pieces of legislation are presently in committee and consist of the following:
House Proposed Legislation
HR 3797: The "Paperwork Burden Reduction Act," this legislation is currently under review in the House Ways and Means Committee. It would amend the Patient Protection and Affordable Care Act (ACA) by eliminating the requirement for employers and health insurance providers to send Forms 1095-B and 1095-C to employees unless the form is requested. Such a request must be honored by the employer and/or health insurance provider either by January 31 o within 30 days after the date of the request, whichever is later.
HR 3801: The "Employer Reporting Improvement Act," is also currently under review in the House Ways and Means Committee. This particular provision would make three key changes to employer reporting requirements for 1095-B and 1095-C returns due after December 31, 2024. The bill would state that employers who are unable to acquire an employee's TIN (taxpayer identification number) by the filing date of the forms can provide the employee's full name and date of birth to satisfy the identification requirement. In addition, the bill allows employers to provide these forms to employees electronically. The bill would also give large employers, with 50 or more full-time employees, up to 90 days to respond to an IRS notice of assessment for failure to provide minimum essential coverage to all eligible employees.
HR 3936:” Tax Cuts for Working Families Act,” is currently under review in the House Ways and Means Committee. The provision would increase the standard deduction in 2024 adding a new bonus guaranteed deduction associated with the taxpayer’s filing status. This would be an increase above and beyond the basic standard deduction for those that otherwise do not utilize the itemized deduction approach.
HR 3937: The "Small Business Jobs Act," and currently undergoing the amendment process in the House Ways and Means Committee, would raise the threshold for 1099-NEC reporting from $600 to $5,000, along with a variety of other tax changes for eligible small businesses. In addition, the bill would increase Section 179 limitations and allow for greater exclusion on this gain from the sale of qualified small business stock and the bill would also establish rural opportunity zones there were function similar in nature to the qualified opportunity zones.
HR 3938:” Built it in America Act,” this legislation is currently in the House Ways and Means Committee, the proposed bill will delay the date where taxpayers must begin deducting research and experimental costs over the three and 15 year timeframe until tax years beginning after December 31, 2025. In addition, the legislation would extend bonus depreciation at the hundred percent level until January 1, 2026 and it would extend the allowance of depreciation and amortization depletion in determining the interest expense deduction- meaning it would not allow it until December 31, 2025. The legislation would also modify the Clean Vehicle Credit changing the caps on the amount of the credit to between $ 2,500 and no greater than $7500 and returned the 200,000 vehicle per manufacturer limitation.
Senate Proposed Legislation
S1664: The "Healthy Families Act," is currently under review in the Senate Committee on Health, Education, Labor, and Pensions. The legislation would require businesses with 15 or more employees to accrue up to 7 paid sick days each year, with employees in businesses with 15 or fewer employees earning 7 unpaid sick days. The paid leave would cover illness, caregiving for sick family members, doctors' visits, health-related school meetings, and domestic violence-related issues. Paid time off would accrue at 1 hour of leave for every 30 hours worked up to 56 hours per year unless the employer provides for a higher limit. Employers may require certification if employees use more than 3 days consecutively. There is a similar bill HR 3409 in the house which falls along the same lines.
S1724: The "Bicycle Commuter Act of 2023," is currently under review in the Senate Committee on Ways and Means, would reinstate and expand the tax-exclusion for employer-provided bicycle commuting benefits. The total amount of excludable value would be 30% of parking fringe benefits and would cover electric bicycles and non-motorized scooters in addition to the previous coverage provided.
Our firm will continue to keep track of the progress of the legislation in order to inform individuals affected by these legislation updates.
For a consultation, please contact:
blaise@bcbenderlaw.com or call 210-316-5063 cell, 210-824-1184 office
betsy@bcbenderlaw.com or call 210-744-1605 cell, 210-824-1184 office
